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Jan.-Feb. 2004

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Build, buy, partner; repeat

At first, Steve Solazzo says, he was puzzled. He had a big job, running IBM Corp.'s multibillion-dollar Linux operations, which he launched in 2000. But IBM's top software executive, Steve Mills, had chosen him to lead the integration of soon-to-be-acquired Rational Software Corp. Any puzzlement quickly faded, though, in...  Continue reading
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Across the great divide

Posted on February 15, 2004 at 7:20 PM
Filed under: Counterparties | Jan.-Feb. 2004 | The Magazine
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How does Jack Welch compare running giant General Electric Corp. with the post he took in 2001, as a special partner for the New York private equity firm Clayton, Dubilier & Rice? "It's not all that different," Welch says in his raspy Boston accent. "You use the same financial...  Continue reading
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Global integration the Cemex way

Posted on February 15, 2004 at 6:45 PM
Filed under: Best Practices | Integration | Jan.-Feb. 2004 | The Magazine
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Cemex SA de CV, the global cement and ready-mix concrete producer, has plants and customers all over the world. Nowadays many of those customers can pull their trucks up to the local Cemex depot, punch a button and load up with cement. The system saves time for customers, who no...  Continue reading
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The deal evaluators

Posted on February 15, 2004 at 5:26 PM
Filed under: Acquisitions | Corporate Strategy | Jan.-Feb. 2004 | The Magazine | Trends
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In September, the board of New York-based financial services firm MONY Group Inc. embraced a $2.3 billion acquisition offer from Axa SA, France's largest insurer. The decision infuriated some MONY shareholders, who mounted a proxy campaign, blasting the low sales price, the lack of an auction process and a...  Continue reading
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Buying out of bankruptcy

The scene at the midtown Manhattan law firm last fall was reminiscent of the World Series of Poker. In fact, though, the setting was Mike Bond's first deal negotiation since joining Avaya Inc. a few months earlier as its vice president of corporate development. Communications systems provider Avaya, which...  Continue reading
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I-bankers' new realities

It's 2004. Do you know where your M&A banker is? It's not such an easy question to answer these days. Investment banking executives, long known for business units that boom and bust along with markets, have outdone themselves in recent years. M&A specialists were among the hardest hit in the...  Continue reading
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Mapping the deal community

Michael Frankel may be only 35, but he's seen dealmaking from just about every vantage: as a lawyer at Skadden Arps, as an i-banker at Merrill Lynch and as a corporate development vice president and then general manager at VeriSign Inc. Those experiences - combined with a knack for...  Continue reading
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Hemphill comes home to AES Corp.

It's a homecoming of sorts for Robert Hemphill Jr., who returned in February to Arlington, Va., power producer AES Corp. as executive VP of global development, a new position. Hemphill worked at AES at its founding in 1981, helping to build it from a three-person, $1 million startup to...  Continue reading
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Fresco the banker

If there were a corporate dealmaker hall of fame, Paolo Fresco would surely be in it. As chairman of Fiat SpA from 1998 to last year, he led a string of transactions, including the purchase of U.S. farm and construction equipment group Case Corp. for $4.3 billion and the...  Continue reading
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A dealmakers' club in London

Visit London's posh East India Club and you can't help reflecting on how imperial glory fades. Visit on the right day, though, and you'll also be reminded that corporate empires live on - provided, of course, that they're reasonably clever about how they move assets in and out of their...  Continue reading
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Letter from the editor

Posted on February 15, 2004 at 1:08 PM
Filed under: From Ken | Jan.-Feb. 2004 | The Magazine
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Welcome to the second issue of Corporate Dealmaker. Readers who saw our premiere issue last winter will recall our premise for launching this quarterly, along with the mission we chose for it. In a nutshell: Most big companies now consider transactions a standard strategic tool and employ a senior executive...  Continue reading
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Adding value at Viacom

Posted on February 15, 2004 at 12:56 PM
Filed under: Jan.-Feb. 2004 | Job Description | The Magazine
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"Great question, that's a really great question," Richard Bressler says after being asked a question that isn't actually all that great. But presiding over one of the most active and tenacious M&A teams in entertainment takes charm as well as dealmaking smarts - and Bressler, CFO of Viacom Inc.,...  Continue reading
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Truth and confidentiality

Posted on February 15, 2004 at 12:34 PM
Filed under: Jan.-Feb. 2004 | Legal Brief | The Magazine
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Confidentiality agreements - typically the first step in any M&A transaction - have become routine. Big companies may sign dozens each year. But approaching them too casually can be a mistake. Surprises may be rare, but CAs have been invoked in unexpected circumstances - including as defenses against multibillion-dollar...  Continue reading
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Building a full-solution sales team

Posted on February 15, 2004 at 12:23 PM
Filed under: Corporate Strategy | Integration | Jan.-Feb. 2004 | The Magazine
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Looking for growth in a highly competitive economy, many companies are adopting a strategy of trying to fill more of their customers' needs. Since their basic products are becoming more commodity-like, the companies seek to add a service element and become so-called "full solution providers." Often, the strategy is...  Continue reading
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Using venture capital to build an ecosystem

Posted on February 15, 2004 at 11:47 AM
Filed under: Corporate Venture Capital | Jan.-Feb. 2004 | The Magazine
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By the late 1990s, funneling millions of dollars in corporate venture capital into startups was standard operating procedure for many big technology companies. Not for IBM Corp., though. Yes, the company's transformation from a bastion of proprietary technology to a champion of open systems was under way, creating a need...  Continue reading
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Linklaters' Schmidt on Pfizer-Wyeth review

Linklaters' Schmidt says how regulators handled Pfizer Inc.'s acquisition of Wyeth is an outlier of how others merger reviews will be conducted.
Decade of The Deal


Movers & Shakers


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FLO TV Inc.

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Isle of Capri Casinos Inc.
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Owen Mahoney, Outspark
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COMPLETE MOVERS & SHAKERS ARCHIVES

The Magazine


MACDdec1cover.gifAnd the winners are...
Even in a period when things like toxic credit default swaps and noxious structured investment vehicles dominate the conversation in many parts of the deal community, people are still willing to take the time to recognize skill and achievement in the strategic transactions that help those companies adapt and grow.
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